[Federal Register Volume 62, Number 231 (Tuesday, December 2, 1997)]
[Notices]
[Pages 63694-63695]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-31480]


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DEPARTMENT OF AGRICULTURE

Commodity Credit Corporation


Title I, P. L. 480 Agreements With the Private Trade

AGENCY: Commodity Credit Corporation.

ACTION: Notice.

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SUMMARY: Commodity Credit Corporation (``CCC'') invites proposals for 
``agricultural market development plans'' to be considered by CCC in 
connection with approval of agreements under Title I of the 
Agricultural Trade Development and Assistance Act of 1954, (``Pub. L. 
480''). Agricultural market development plans must be submitted by 
developing countries or private entities in conjunction with 
agricultural trade organizations.

DATES: Comments on this notice must be received by February 2, 1997.

FOR FURTHER INFORMATION CONTACT:
Director, Program Development Division, Foreign Agricultural Service, 
U.S. Department of Agriculture, Room 4506, South Building, Washington, 
D.C. 20250; telephone: (202) 720-4221; Facsimile: (202) 690-0251.

SUPPLEMENTARY INFORMATION: Under Title I of Pub. L. 480, CCC finances, 
on concessional credit terms, the sale and exportation of agricultural 
commodities to developing countries. As a result of amendments made by 
the Federal Agriculture Improvement and Reform Act of 1996, Pub. L. 
104-127, CCC may now also enter into Title I, Pub. L. 480 agreements 
with private entities. When selecting agreements to be entered into 
under Title I, Pub. L. 480, whether with a developing country or 
private entity (hereafter ``participant''), CCC must give priority to 
agreements providing for the export to developing countries that:
    (1) Have the demonstrated potential to become commercial markets 
for competitively priced United States agricultural commodities;
    (2) Are undertaking measures for economic development purposes to 
improve food security and agricultural development, alleviate poverty, 
and promote broad-based equitable and sustainable development; and
    (3) Demonstrate the greatest need for food.
    Section 102(c)(2) of Pub. L. 480 provides that CCC shall consider a 
developing country for which an agricultural market development plan 
has been approved as having the demonstrated potential to become a 
commercial market. The purpose of this Notice is to invite interested 
parties to submit agricultural market development plans to CCC for its 
consideration in selecting Title I, Pub. L. 480 agreements. In order to 
be considered, an agricultural market development plan must be 
submitted by a developing country or private entity in conjunction with 
an ``agricultural trade organization.'' An agricultural trade 
organization is a non-profit organization that promotes the sale and 
export of U.S. agricultural commodities. The terms ``agricultural 
commodities'' and ``developing country'' are defined in section 402 of 
Pub. L. 480. The agricultural market development plan must describe a 
project or program for the development and expansion of a commercial 
market for a United States agricultural commodity in a developing 
country, and the economic development of the country. Local currency 
realized from the sale of commodities received by a participant may be 
used to fund the agricultural market development plan.
    Interested parties desiring to submit an agricultural market 
development plan to CCC should submit an agricultural market 
development plan, or a concept paper to the Director, Program 
Development Division, Foreign Agricultural Service at the following 
address: Director, Program Development Division, Foreign Agricultural 
Service, U.S. Department of Agriculture, Room 4506, South Building, 
Washington, D.C. 20250.
    The agricultural market development plans or concept papers should 
outline the following points that will ultimately be incorporated into 
a final agricultural market development plan:
     A description of the project or program for the 
development and expansion of a commercial market for a U.S. 
agricultural commodity on a generic basis in a developing country, and 
the economic development of the country;
     An indication of funding sources to implement the project 
or program, e.g., private industry or host government funds, in 
addition to local currency sales proceeds;
     Whether CCC funds would be necessary for reimbursement of 
administrative costs incurred by agricultural trade organizations in 
implementing and administering agricultural market development plans 
(CCC will not provide funds for

[[Page 63695]]

administrative costs incurred in connection with the development of an 
agricultural market development plan at any stage of its development.);
     A results-oriented means of measuring the success of the 
project or program; and
     A plan for graduating the project or program away from the 
use of any federal funds.
    In addition to the above items, an agricultural market development 
plan or concept paper should also include information regarding:
     Credit terms that may be desired by a participant in 
connection with the underlying Title I, Pub. L. 480 agreement;
     The agricultural commodity to be purchased;
     The administrative capabilities of the agricultural trade 
organization to implement an agricultural market development plan;
     If the participant is a private entity, a description of 
security to be provided CCC to support repayment to CCC of the 
financing extended;
     A description of any other organizations that will be used 
in completing the project or program and how such organizations will be 
used;
     A planned budget summary of funds or commodities used in 
lieu of funds, in support of the project or program.
    Interested parties have considerable latitude to exercise 
creativity in constructing proposals. In evaluating project proposals, 
CCC will consider the following factors:
     The organizational ability of the participant to complete 
the project or program;
     The size, in both budget and scope, of the proposed 
project or program, and the level of U.S. and private resources 
available;
     Anticipated cost to CCC in terms of initial financing and 
repayment terms;
     The likelihood of the market becoming a commercial market 
for U.S. agricultural commodities.
    CCC will notify interested parties as to whether it determines that 
the submission describes a desirable agricultural market development 
plan and, if so, work with the organization to develop a final plan. 
After CCC approval of a final agricultural market development plan, CCC 
will develop and implement a Title I, Pub. L. 480 agreement with the 
participant designated in the plan. The Title I, Pub. L. 480 agreement 
will incorporate a requirement to use local currency proceeds to 
implement the plan.

    Signed at Washington D.C. on November 24, 1997.
Lon Hatamiya,
Administrator, Foreign Agricultural Service and Vice President, 
Commodity Credit Corporation.
[FR Doc. 97-31480 Filed 12-1-97; 8:45 am]
BILLING CODE 3410-10-M